Par for the Overly Complicated Course!
Yes, this is very expensive, but as others have pointed out, the hose grip has all sorts of gadgetry in it that boosts the price.
This sort of thing is why I try to be careful and get only what I need to get a job done. Many, many appliances today have electonically-controlled "features" that may be beguiling on the sales floor, but which turn into nightmares when it comes to servicing. My TriStar is a can, a fan, a switch, and a motor- easy to fix, with parts very reasonably priced (for a premium machine, anyway).
I've always been astounded at how many people demand the "best" and the most gadget-laden when they're buying, but then scream bloody murder about the cost of maintenance and parts. Couldn't you figure out that a BMW might cost more to fix than a Chevy when you bought the damn thing?
What really frosts my rubber parts is the people who will not buy proper supplies for an expensive vac. Why in the bloody hell did you buy it if you didn't want to spend the money for its bags and filters?
Jeez Louise! Rant over.